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The Efficient and Fair Approval of “Multiple-Cost-Single-Benefit” Projects Under Unilateral Information

Author

Listed:
  • Nava Kahana

    (Department of Economics, Bar Ilan University,IZA, Bonn)

  • Yosef Mealem

    (Netanya Academic College, The School of Banking & Finance Netanya, Israel)

  • Shmuel Nitzan

    (Department of Economics, Bar Ilan University)

Abstract

This paper focuses on indivisible multiple-cost–single-benefit projects that must be approved by the government. A simple mechanism is proposed that ensures an efficient and fair implementation of such projects. The proposed mechanism is appropriate for a unilateral information structure: the single beneficiary has complete information on the cost and benefit of the project while the government official has no such information and the cost bearers have information only on each other's costs.

Suggested Citation

  • Nava Kahana & Yosef Mealem & Shmuel Nitzan, 2009. "The Efficient and Fair Approval of “Multiple-Cost-Single-Benefit” Projects Under Unilateral Information," Working Papers 2009-14, Bar-Ilan University, Department of Economics.
    • Handle: RePEc:biu:wpaper:2009-14
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    indivisible project; single beneficiary; multiple-cost bearers; unilateral information; efficient and fair implementation;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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